Assets Care and Reconstruction Enterprise Limited (ACRE), one of India’s largest asset reconstruction companies (ARC), announced a successful exit from its investment in Jayaswal Neco Industries Limited (JNIL). This is one of the largest debt resolutions outside the National Company Law Tribunal (NCLT) framework, underscoring ACRE’s efficiency in effective financial restructuring.
ACRE had aggregated 100% of the debt of JNIL with a cash investment of ~INR 2,700 Crore and subsequently restructured the debt, resulting in a recovery of more than INR 5,600 Crore over a 5-year period. The deal marked one of the few instances of a complete distressed asset takeover in India and one of the few large cases which saw interest from a lot of global marquee investors. While the debt has been re-paid, ACRE continues to retain 26% equity stake in JNIL.
Jayaswal Neco Industries Limited is a leading player in the specialty auto-grade steel segment mainly catering to commercial vehicles. It owns and operates a 1 MTPA fully-integrated steel plant in Chhattisgarh and is listed on both the NSE and BSE with a market cap of ~ INR 5,000 Cr.
Ms. Neeta Mukerji, CEO of ACRE, expressed satisfaction with the outcome, stating, “The successful debt resolution and recovery in JNIL is a testament to ACRE’s expertise in resolving large stressed assets in India. It is one of the largest cash deals in the ARC space and also the one of the largest resolutions outside NCLT.”